Precious metals have indeed faced a challenging market this year. Gold opened the year at $2,625, briefly dipped to $2,614.66 in January to find a bottom, then never looked back, soaring all the way to $4,549 in December, with an overall annual fluctuation of over $1,900. At its peak, the increase nearly approached 73%, and it finally closed at $4,318, locking in a 64.31% gain for the year.

Speaking of which, the late-year correction was quite painful. The US dollar appreciated, and US Treasury yields rose in tandem, prompting institutions to take profits. Plus, the CME suddenly increased margin requirements for precious metals futures, which directly triggered a second wave of selling. Gold retreated nearly $230 from its peak, causing many long positions to be liquidated.

But this was not enough to change the overall pattern. Every dip was met with substantial buying at low levels, mainly from risk-averse funds and central banks still aggressively stockpiling gold. ETF inflows continued to add incremental funds, clearly indicating that the market’s medium- to long-term outlook for gold remains unchanged.

Looking ahead to 2026, the conditions are actually more favorable for gold. Expectations of Federal Reserve rate cuts still persist, and there are no signs of easing in global geopolitical tensions. The demand for inflation hedging remains high. Central banks around the world continue to purchase gold, and this momentum is unlikely to stop anytime soon. These factors combined give strong momentum for a continued gold bull market, and breaking through the $5,000 mark is really not just a dream.